Australian Dollar recovers broadly today on stronger than expected job data. Though, upside is limited so far as unemployment rate remains a long way from RBA's rate of full employment. New Zealand Dollar is also among the strongest following better than expected GDP growth. Sterling is mixed as focus now turns to BoE rate decision and UK retail sales. For the week though, Canadian Dollar remains the strongest, with help from WTI oil price which breached 61 handle. Sterling remains the weakest one. Technically, AUD/USD recovered well ahead of 0.6800 support and maintains near term bullishness. Focus is back to 0.6938 resistance and bring will resume recent rebound from 0.6670. EUR/AUD's steep decline suggests rejection by 0.6323 resistance. Focus is back on 1.6063 support. Sterling pairs will be the major focuses today. In particular, 1.3050 support in GBP/USD, 142.47 support in GBP/JPY and 0.8508 resistance in EUR/GBP. We'd still expect further rise in the Pound as long as these levels hold. But break will bring deeper pull back in Sterling in general. In Asia, Nikkei closed down -0.29%. Hong Kong HSI is down -0.40%. China Shanghai SSE is up 0.06%. Singapore Strait Times is down -0.17%. Overnight, DOW dropped -0.10%. S&P 500 dropped -0.04%. NASDAQ rose 0.05%. 10-year yield rose 0.035 to 1.924. |
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